Arunachal Pradesh, commonly known as the “Land of the Dawn-Lit Mountains,” is a northeastern Indian state with huge potential for MSMEs. The Arunachal Pradesh government has launched a number of credit packages to help MSMEs develop and thrive in the state. The following are some of the financing packages available for MSMEs in Arunachal Pradesh:

Deendayal Upadhaya Bunkar Yojana

The Arunachal Pradesh government introduced this program to give women weavers in the region financial support. It enables female weavers to obtain credit from banks at a reasonable rate for their working capital needs. Here are a few of its characteristics:

• Loan amount: Up to 2 lakhs.
• Interest Subvention: 7%
• Loan tenure:    1 year
• Gender: Females
• Residence: Arunachal Pradesh

Chief Ministers Krishi Rinn Yojana (CMKRY)

The Chief Minister’s Krishi Rinn Yojana is a scheme introduced by the Arunachal Pradesh government to give financial support in the form of MSME loans to farmers and agri-business owners. This scheme provides zero-interest financing for the establishment of agro-based companies, agricultural equipment, and other associated activities. Here are some of the highlights:

• Loan amount: Up to 3 lakhs.
• Interest rate: 0%.
• Loan tenure: 1-5 years.
  EligibilityAll farmers in Arunachal Pradesh have a valid KCC (Gender)Both Males and Females

Credit-Linked Capital Subsidy Scheme (CLCSS)

In October 2000, the Government of India established the Credit Linked Capital Subsidy Scheme. This plan offers MSMEs with the necessary financing to upgrade their present technologies. Businesses can utilize this initiative to improve their existing plant and machinery and increase profits. This policy has no upper loan limit, however the subsidy is based solely on the loan amount sanctioned for P&M purchases. It has the following primary features:

• Loan amount: no upper limit.
• Subsidy: 15% of loan amount.
• Annual guarantee fee: 0.75-1.0%.
  Loan tenureFlexible tenure based on the repayment capacit

Pradhan Mantri Mudra Yojana (PMMY).

The Pradhan Mantri Mudra Yojana (PMMY) is a major central government plan that debuted in 2015. It makes microloans to non-corporate, non-farm micro, and small businesses in both rural and urban locations.

PMMY provides loans in three categories, based on the stage of business growth and finance requirements:

• Shishu Mudra: Up to Rs 50,000.
• Kishore Mudra: Rs. 50,001-Rs. 5 lakh
• Tarun Mudra: Rs 5 lakh to Rs 10 lakh.

MUDRA loans are available through a variety of financial institutions, including public and private sector banks, regional rural banks, small finance banks, microfinance institutions, and non-banking financial companies (NBFCs).

Unlike other loan schemes, PMMY has no age, gender, duration, or interest rate requirements. All of these elements can vary depending on the loan category and the lending institution’s policies.

Prime Minister’s Employment Generation Programme (PMEGP)

PMEGP is a credit-linked subsidy system run by the Ministry of Micro, Small, and Medium Enterprises (MSME) with the goal of increasing job opportunities through the establishment of microenterprises. This plan primarily targets women, traditional and future craftspeople, and unemployed youth. The following are some of its primary characteristics:

• Age: Minimum age of 18.
  Interest rates vary between 11% and 12% based on the bank.
• Loan tenure: 3-7 years.
• Education qualification: VIII standard pass.
• Maximum loan amount: Rs. 1 Crore.
  Subsidy: 15% to 35%.

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

The CGTMSE is a cooperative project initiated in 2000 by the Ministry of Micro, Small and Medium Enterprises (MSME), the Government of India, and the Small Industries Development Bank of India (SIDBI). It promotes financial institutions to offer collateral-free credit solutions to micro and small businesses. In the event of a default, the bank might submit a claim with CGTMSE. Here are some of its primary features:

• Loan amount: Up to 5 crore.
• Collateral is not required.
• Loan tenure: 5-10 years.
• Annual Guarantee Fee: 0.37%-1.35%.
• Age: Minimum age is 18.

Stand Up India

Stand-up India is a central government project that began in 2016. It offers bank loans to women and Scheduled Castes (SCs) and Scheduled Tribes (STs) to start their own businesses. Existing firms are ineligible for loans under this scheme because they are intended for new businesses only. These loans are supplied by a variety of banks, including scheduled commercial banks, regional rural banks (RRBs), and small financing banks.

This initiative offers loans ranging from Rs. 10 lakh to Rs. 1 crore. Interest rates and tenure vary depending on the type of the business as well as other considerations such as the lender’s credit policies, etc.

SIDBI Make in India Soft Loan Fund for Micro, Small, and Medium Enterprises (SMILE)

The national government introduced SMILE, a project to provide financial help to 25 identified sectors under the ‘Make in India’ initiative. This program supports the ‘Make in India’ movement among entrepreneurs. SMILE provides ample cash for both the start-up and expansion of established businesses. The following are some of its primary characteristics:

• Maximum loan tenure: 10 years.
• Loan amount:  ranges from Rs.10 lakh to Rs.25 lakhs.
• Interest rates:  vary based on corporate requirements.
• Nature of the loan: Term and quasi-equity loans